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Betas tend to move towards 1.0 with passage of time are classified as

A. standard betas

B. varied betas

C. historical betas

D. adjusted betas

Answer: Option D

Solution(By Examveda Team)

Betas tend to move towards 1.0 with passage of time are classified as adjusted betas. The Adjusted Beta is an estimate of a security's future Beta. Adjusted Beta is initially derived from historical data, but modified by the assumption that a security's true Beta will move towards the market average, of 1, over time.

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